Test Bank for Financial and Managerial Accounting 5th Edition by Jerry Weygandt, Paul Kimmel, Chapter 1-25 | All Chapters

TEST BANK
Financial and Managerial Accounting, 5th Edition
By Jerry J. Weygandt, Paul D. Kimmel
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, Table of Content
1 Accounting in Action
2 The Recording Process
3 Adjusting the Accounts
4 Completing the Accounting Cycle
5 Accounting for Merchandising Operations
6 Inventories
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7 Accounting Information Systems
8 Fraud, Internal Control, and Cash
9 Accounting for Receivables
10 Plant Assets, Natural Resources, and Intangible Assets
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11 Current Liabilities and Payroll Accounting
12 Accounting for Partnerships
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13 Corporations: Organization and Capital Stock Transactions
14 Corporations: Dividends, Retained Earnings, and Income Reporting
15 Long-Term Liabilities
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16 Investments
17 Statement of Cash Flows
18 Financial Analysis: The Big Picture
19 Managerial Accounting
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20 Job Order Costing
21 Process Costing
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22 Cost-Volume-Profit
23 Incremental Analysis
24 Budgetary Planning
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25 Budgetary Control and Responsibility Accounting
26 Standard Costs and Balanced Scorecard
27 Planning for Capital Investments

,Financial and Managerial Accounting, 5e (Weygandt)
Chapter 1 Accounting in Action

1) Owners of business firms are the only people who need accounting information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
SC
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5

2) Transactions that can be measured in dollars and cents are recorded in the financial
information system.
Answer: TRUE
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Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
R
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
EG
3) The hiring of a new company president is an economic event recorded by the financial
information system.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Reporting
U
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
ID
4) Management of a business enterprise is the major external user of information.
Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: K
ES
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5

, 5) Accounting communicates financial information about a business enterprise to both internal
and external users.
Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
SC
Minutes: 0.5

6) Accounting information is used only by external users with financial interests in a business
enterprise.
Answer: FALSE
Diff: 1
LO: 1
O
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
R
7) Financial statements are the primary means of communicating accounting information to
interested parties.
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Answer: TRUE
Diff: 1
LO: 1
Bloom / IFRS: K
AACSB/ IMA: Reflective Thinking / Reporting
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5
U
8) Bookkeeping and accounting are one and the same because the bookkeeping function includes
the accounting process.
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Answer: FALSE
Diff: 1
LO: 1
Bloom / IFRS: C
AACSB/ IMA: Reflective Thinking / Business Operations
ES
AICPA: BB: Critical Thinking; FN: Reporting
Minutes: 0.5